"Fiscal cliff" significant risk to states: Fitch

Reuters Staff

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(Reuters) - Fitch Ratings warned in a special outlook on Monday that the impending tax increases and federal spending cuts that make up the U.S. “fiscal cliff” is the most significant credit risk to states in 2013.

“The risk that the fiscal cliff presents to the overall economy is the biggest concern for state credit, as state revenue systems quickly reflect changing economic conditions,” said Laura Porter, managing director at the rating agency, in a statement.